PARIN -v- Q GROUP WA PTY LTD [2026] WASC 244
[2026] WASC 244
Page 1
JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
IN CIVIL
CITATION : PARIN -v- Q GROUP WA PTY LTD [No 2] [2026]
WASC 244
CORAM : HOWARD J
HEARD : 18 - 21, 25 and 29 MAY 2026
DELIVERED : 18 JUNE 2026
FILE NO/S : CIV 2073 of 2018
BETWEEN : DAVID VICTOR PARIN
First Plaintiff
EDGE INVESTMENTS (WA) PTY LTD
Second Plaintiff
AND
Q GROUP WA PTY LTD
First Defendant
MAREMA NOMINEES PTY LTD
Second Defendant
Catchwords:
Whether misleading and deceptive conduct on the part of the Engineer retained
for a residential property development - Where there is a defective retaining wall
on the neighbour's property - Where the retaining wall was rotating towards the
plaintiffs' property - Where options put to the plaintiffs by the Engineer to
resolve the issue - Whether the plaintiffs rejected solutions put by the Builder
and the Engineer - Claim against the Builder settled during trial - Claim against
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the Engineer narrowed to one email - Whether plaintiffs relied on
representations made in that email - Finding that the representations were not
made as pleaded - Finding that the representations were not misleading or
deceptive or likely to mislead or deceive - Finding that the plaintiffs did not rely
on the representations - Finding that loss or damage could not be establish as
pleaded - Plaintiffs' claims against the Engineer dismissed
Legislation:
Civil Liability Act 2002 (WA)
Competition and Consumer Act 2010 (Cth)
Result:
Dismissed
Category: B
Representation:
Counsel:
First Plaintiff : A P Rumsley
Second Plaintiff : A P Rumsley
First Defendant : R J Lee
Second Defendant : F A Stanton & I Smith
Solicitors:
First Plaintiff : Alan Rumsley
Second Plaintiff : Alan Rumsley
First Defendant : Jacobson & Associates
Second Defendant : Wotton Kearney Lawyers
Case(s) referred to in decision(s):
Nil
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HOWARD J:
Overview
1 Mr Parin, the first plaintiff, owned a property at 218 Ewen Street,
Woodlands in this State (Property) which historically had a 1950s
house and shed built on it.
2 Mr Parin wanted to develop the property by constructing eight
Units on that land. To that end, the first defendant, the Builder and the
second defendant, the Engineer were engaged.
3 During preparatory works on the Property, a problem was
identified with a Retaining Wall on the neighbouring property to the
west of the Property.
4 Options were put forward to resolve the problem with the
Retaining Wall, but none was implemented and the construction of the
Units was started.
5 Prior to the completion of the development, the building contract
came to an end. Soon after, in 2018, Mr Parin commenced these
proceedings against the Builder, and then some years later joined the
Engineer.
6 Ultimately, the construction was not completed and Mr Parin sold
the Property with the construction only partially complete.
7 During the course of the trial, Mr Parin settled his claim against
the Builder, as well as the Builder's counterclaim against him, and the
trial continued against the Engineer.
8 The claim made against the Engineer is that it caused Mr Parin and
the corporate second defendant, of which Mr Parin was the sole director
at all material times, loss and damage by reason of an email sent on
15 January 2018 which was said to be misleading and deceptive in
breach of the well-known statutory provisions.
9 In short, Mr Parin says that by that email, the Engineer represented
that the problem with the Retaining Wall had been rectified, when that
was not the case.
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10 At the time of the trial, the current pleadings were the:
1. sixth amended statement of claim filed on 28 April 2026
(SOC);
2. first defendant's re-amended defence filed on 12 May 2026
(first defendant's defence);
3. first defendant's fourth amended counterclaim filed on 15 May
2026; and
4. second defendant's third further re-amended defence filed on
5 May 2026 (Defence).
Facts found
11 This section principally sets out my findings of fact. Unless
otherwise indicated, for the avoidance of doubt, I have made findings of
fact in accordance with the facts stated in this section below.
12 Mr Parin bought the Property on about 7 April 2015.1 He remained
the registered proprietor until about 24 July 2025 when he sold the
Property.
13 As mentioned above, there was a limestone Retaining Wall on the
neighbour's property (at 216 Ewen Street) that ran along the western
side of the Property.
14 In these reasons, I have proceeded on the basis that Arthur Naoum
was effectively the owner of the neighbouring property at 216 Ewen
Street.2 Mr Naoum appears to have been the only person who interacted
with Mr Parin or the Builder as owner of the neighbouring property.
15 In these reasons, where I refer to the neighbouring property, the
neighbour's side or the neighbour, I am referring to the property at
216 Ewen Street and Mr Naoum respectively.
16 Ewen Street runs along the southern side of the Property.
17 Relevantly, the Property slopes downwards from west to east.
18 The Retaining Wall started at one block high at the southern,
Ewen Street end. Moving northwards, the wall progressed through two
1 Witness Statement of David Victor Parin dated 7 December 2025 (as amended and with paragraphs 136 and
137 struck out) (Exhibit A) [3].
2 Exhibit A [5].
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courses or two blocks, to three blocks or courses and finished in the
north-west corner at four courses or four blocks. There was a
Colorbond fence on top of the Retaining Wall.3
19 At least up until August 20234 there was a problem with the
Retaining Wall. It had not been constructed properly, at least, at the
northern end and was leaning towards the Property there in a way that
engineers would describe as 'rotating'.
20 The Retaining Wall had been constructed prior to any planning
for, or construction of, the Units. Its structural problems also pre-dated
such planning or construction.
21 Mr Parin's plan to redevelop the Property included demolishing
the 1950s house and constructing four double storey buildings
comprising the eight Units (Development).
22 It was Mr Parin's intention at all material times up to at least June
2018, to sell four of the Units and to retain the other four Units to
lease out.
23 The Development was, and is, Mr Parin's only building
development.5
24 Mr Parin intended to undertake the Development through his
company, the second plaintiff. For the purposes of this case, however,
the second plaintiff was, and is, simply Mr Parin's alter ego.6 It was not
suggested that the second plaintiff's position was materially different
from Mr Parin's in any relevant respect. References to Mr Parin in these
reasons should be understood as including the second plaintiff.
25 From about April 2015, Mr Parin engaged an architect,
Mr Germano, to prepare architectural drawings for the Units.
26 On about 15 September 2015, the Engineer provided to Mr Parin a
proposal to provide structural engineering services in relation to the
3 ts 202 - 203.
4 See [180] below which recounts the neighbour complying with the second Building Order.
5 ts 197 - 198.
6 ts 103.
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Development.7 Subsequently, the plaintiffs retained the Engineer on the
terms which had been proposed.8
27 Michael Lalli was the prime actor on behalf of the Engineer
throughout. So, references to Mr Lalli in these reasons include
the Engineer.
28 By about 26 November 2015, Mr Germano had prepared designs
or architectural drawings for the Development9 which, as will be seen,
were subsequently part of the Building Permit approved in
September 2017 by the City of Stirling.
29 On 17 December 2015, the proposed Development was approved
by the City of Stirling.10
30 In September 2016, Mr Parin entered into a contract of sale
(off the plan) for proposed Lot 7 of the Property for a purchase price of
$550,000.11 That contract provided for completion of the Development
by the end of June 2018.12
31 In November 2016, Mr Parin entered into a contract of sale
(off the plan) with a purchaser for proposed Lot 8 of the Property for a
purchase price of $572,500.13 That contract provided for completion of
the Development by the end of December 2018.14
32 On 31 August 2017, the Builder provided a preliminary
construction program to the plaintiffs.15
33 On 11 September 2017, the plaintiffs entered into a lump sum
building contract with the Builder for the building works at the Property
(Building Contract).16
7 Trial Bundle document 4; SOC [8A]. From here, I have referred to documents included in the trial bundle
simply as 'TB' followed by the document number.
8 SOC [8D.1]; Defence [8A.1(b)]; Plaintiffs' opening submissions filed on 15 May 2026 (Plaintiffs' opening
submissions) [34].
9 Plaintiffs' opening submissions [37]; TB 8.
10 TB 14; SOC [4].
11 TB 21; SOC [5] - [6].
12 TB 21 at PDF page 15; SOC [6].
13 TB 22; SOC [7] - [8].
14 TB 22 at PDF page 15; SOC [8].
15 TB 34; SOC [9.3].
16 SOC [11].
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34 The Building Contract comprised:
1. a Housing Industry Association Lump Sum building contract
dated 11 September 2017;17
2. a Construction Addenda;18
3. a special conditions annexure;19 and
4. Drawings and Specifications which included Engineering
Drawings prepared by the Engineer.20
35 The prime actors for the Builder throughout the relevant period
were Michael Lamattina (who had the role of project manager, but who
was not a registered builder) and Glenn Smith (who was and is a
director of the Builder). Where I refer in these reasons to Mr Lamattina
or Mr Smith, I am referring to them acting on behalf of the Builder.
36 On about 15 October 2015, the Engineer carried out a site
inspection, the results of which were included in a Site Inspection and
Classification Report dated 2 December 2015.21
37 Between about 11 November 2015 and September 2017, the
Engineer prepared structural drawings in relation to the Development.22
The drawings prepared by the Engineer included those labelled:
1. Rev A dated 11 November 2015;23
2. Rev B dated 26 November 2015;24
3. Rev 0 dated 2 December 2015;25
4. Rev 1 dated 14 December 2015;26
5. Rev 2 dated 5 September 2016;27
6. Rev 3 dated 20 April 2017;28 and
17 TB 38; SOC [13].
18 TB 39; SOC [13].
19 TB 40; SOC [13].
20 TB 42. These were the Engineer's Drawings Rev 4 dated 24 July 2017; SOC [13], [14.2].
21 TB 11.
22 TB 44; SOC [8E].
23 TB 7.
24 TB 9.
25 TB 10.
26 TB 13.
27 TB 19.
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7. Rev 4 dated 24 July 2017.29
38 The Engineer's Drawings Rev 3 dated 20 April 201730 contained
an annotation (Engineer's Annotation) which read:
Microfine cement grout injection or equivalent by specialist
sub contractor to form continuous permanent underpinning to existing
structure above. Underpinning works must be designed such that no
support is provided by new building.31
39 The Engineer's Annotation was shown in two places in the
Engineer's Drawing Rev 3 but, most relevantly for present purposes,
was made in the north-west, top right, corner of the plan immediately
above proposed 'Unit 3'.32
40 That Unit was not consistently described as 'Unit 3' throughout the
contemporaneous documents. In the interests of clarity, I refer to it in
these reasons as the NW Unit.
41 Where these reasons refer to the Retaining Wall leaning towards
the Property or the new construction, or touching the new construction
and so loading it, what is being referred to is the NW Unit which was to
be the closest Unit to the rotating part of the Retaining Wall.
42 Mr Lalli's evidence was that the Engineer's Annotation recognised
that the Retaining Wall required reinforcement (via a grout injection) so
that the Retaining Wall would not be dependent on any support from
the new building (including the NW Unit) to be constructed on the
Property.33 I accept that evidence. This is the first of two senses in
which the word or concept of 'loading' is used.34 The second sense is
that the Retaining Wall could rotate or lean towards the NW Unit on the
Property so as to touch it and load the new building. It is common
ground, and I find, that the first identification of the risk of that rotation
or leaning was made by Mr Lalli on 2 October 2017.35 This will be
returned to below.
28 TB 26.
29 TB 42.
30 TB 26.
31 TB 26 at PDF page 2. The Engineer's Annotation appeared as well in all of the Engineer's subsequent
drawings.
32 TB 26 at PDF page 2.
33 Witness Statement of Michael Anthony Lalli dated 27 January 2026 (Exhibit H) [30] - [33].
34 See second defendant's outline of closing submissions filed on 29 May 2026 (second defendant's closing
submissions) [7].
35 Exhibit H [10]; ts 218.
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43 The Engineer's Drawings Rev 3 on sheet 336 had a diagram or
'detail' which showed, towards the bottom right of the page, a diagram
which detailed the 'existing limestone retaining wall' at three courses
with one backing block behind it at its bottom. That detail also showed
the Engineer's Annotation with an arrow pointing to the ground
immediately under the Retaining Wall on the neighbour's side.
44 Further, the detail showed a 'post and panel retaining wall' in front
of the Retaining Wall to the east, on the Property's side. It was common
ground that although described as a 'retaining wall' the 'post and panel
wall' was at no material time understood by the Engineer, the Builder
nor Mr Parin to be a retaining wall per se. It was always designed to
protect from the weather the face of the soil which was to be injected
with grout.
45 At the time the detail was drawn, Mr Lalli did not know whether
there were backing blocks behind the Retaining Wall. Rather, he drew
it from his expectation that the Retaining Wall would have been built
and designed to normal accepted principles:37 that would have included
one backing block behind the Retaining Wall where it was three blocks
high and two backing blocks behind the Retaining Wall where it was
four blocks high.38
46 On about 19 September 2017, the City of Stirling issued a building
permit for the Development (Building Permit).39 The Building Permit
was granted, in part, on the basis of:
1. Engineer's Drawings Rev 3 dated 20 April 2017;40 and
2. the design or architectural drawings prepared by Mr Germano
dated 26 November 2015.41
47 On 30 September 2017, the Builder asked Mr Parin to arrange a
meeting with the owner of the neighbouring property.42
48 On 2 October 2017, Mr Lalli inspected the Property and the
Retaining Wall with Mr Parin, Mr Lamattina and the neighbour.43
36 TB 26 at PDF page 4.
37 ts 420, 423.
38 ts 421.
39 TB 44; SOC [8E].
40 TB 44 at PDF page 174 and following.
41 TB 8; which became part of TB 44 at PDF page 184 and following.
42 TB 45; ts 181, 208.
43 SOC [18A]; Defence [9.1(c)].
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49 There was probing done under the Retaining Wall on the
neighbour's side by the Engineer with a penetrometer to determine if
there was a mass under the ground next to, or behind, the Retaining
Wall on the neighbour's side.44
50 It appears to be common ground that Mr Lalli gave some advice at
the Property on 2 October 2017 as to the Retaining Wall,45 including to
Mr Parin.
51 Mr Parin had only a very general recollection of what was
discussed at that meeting.46
52 In cross-examination, Mr Parin accepted he was told that a lack of
embedment, the lack of backing blocks, and maybe the vegetation or
trees on the neighbour's property had caused the Retaining Wall to lean
in towards the Property.47 I find that Mr Parin was notified of these
matters by Mr Lalli at the Property on 2 October 2017.
53 Mr Lalli's evidence was to the effect that on 2 October 2017 he
pointed out to Mr Parin that, if the only stabilisation measure adopted
was the installation of the Grout Block, it would be necessary for the
Retaining Wall to be monitored for continued rotation and then for
remediation to be demanded from the neighbours if that occurred.48
There was no challenge to that evidence from Mr Lalli in
cross-examination.
54 Mr Parin denied in his evidence that Mr Lalli told him that he was
to monitor the Retaining Wall or that he had agreed to do so.49 I do not
accept Mr Parin's evidence that he had not been told to, and had not
agreed to, monitor the Retaining Wall.
55 I find that Mr Lalli did advise Mr Parin, on 2 October 2017, that
the Retaining Wall would need to be monitored for continued rotation,
as per his evidence.
56 While I have found that such advice was given at the meeting on
2 October 2017, I do not consider it is material whether Mr Lalli raised
the monitoring of the Retaining Wall at the Property on 2 October 2017
or on some occasion soon after that. I accept that he did so in
44 Exhibit H [56] - [57]; ts 422.
45 Exhibit H [55] - [56]; SOC [18A], [18B]; Defence [9.1(e)].
46 ts 171 - 172, 209.
47 ts 211, 218.
48 Exhibit H [75].
49 ts 241 - 243.
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October 2017. I have set out below in [126] - [129] why I have reached
that conclusion.
57 Otherwise, it was common ground50 that exactly what was said at
the Property on 2 October 2017 is not of great moment because of the
email which was sent by the Engineer a couple of days later on
4 October 2017 to the Builder (Engineer's 4 October 2017 email);51
and which was then forwarded by the Builder to Mr Parin some
minutes later.52
58 Also, for present purposes, it does not matter whether all of the
statements made by the Engineer in his email of 4 October 2017 were
also made by him on 2 October 2017.
59 The Engineer's 4 October 2017 email stated, relevantly:
• The section of existing limestone retaining wall to the rear of the
site appears to have no backing blocks. The wall in this area is
considered to be structurally inadequate and not built to generally
accepted principles, where backing blocks would be expected.
• The section of wall to the rear is exhibiting signs of cracking and
rotation. Cracking was visible in two locations.
• The wall generally appeared to have little or no embedment of the
bottom block. This will generally affect the stability against
overturning should undermining of the front edge of the wall occur.
It can also affect stability of the wall in sliding.
• There were a number of trees and hedges planted immediately
behind the wall which would exert some lateral loads onto the wall
depending on the root system. Planting of trees in close proximity
to a retaining wall is not recommended.
• The option of using microfine grout injection behind the wall to
stabilise it from further rotation was suggested, however, this
would most likely result in all vegetation planted behind the
retaining wall being affected and most probably dying. Thus the
only other area to grout injection would be directly under the
limestone retaining wall.
• If the underside of the existing retaining wall is grout injected, the
stability of the existing limestone retaining wall cannot be
guaranteed and would likely continue to rotate, loading the new
construction, requiring it to be strengthened.
50 ts 506.
51 TB 49.
52 TB 48.
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• The option of strengthening the new construction by the
introduction of reinforced and concrete filled cavity brick
construction was considered. This however will impinge on the
internal dimensions of the Unit, particularly the Kitchen, Bath and
Store, where the thickness of the wall construction would be
greater than the existing walls. For example, the new concrete filled
cavity wall in the Kitchen and Bathroom areas would increase from
250mm to 300mm. In the Store room, it appears that the existing
single leaf wall would increase to 300mm, which may affect the
minimum area requirement of the store.
We have investigated to use of [sic] reinforced core filled block
construction to reduce the overall thickness of the wall to say a maximum
of 200mm and would be happy to discuss with you, should you prefer to
go down that path.53
60 The parties (in the trial) generally referred to:
1. the option put by Mr Lalli in the fifth bullet point as quoted
in [59] above (namely the microfine grout injection behind the
wall on the neighbour's side) as Option 1. And, it was common
ground that was not considered to be a viable option (from early
October 2017 onwards) because of the neighbour's rejection
of it;
2. the penultimate bullet point in the email quoted in [59] as
Option 2. It was common ground that the proposed grout
injection had been shown in the Engineer's Drawings Rev 3 and
was proposed by the Engineer prior to the inspection at the
Property on 2 October 2017. That is, and I find, that it was not
in any relevant sense a new option being presented to Mr Parin
on 4 October 2017;
3. the last bullet point quoted in [59] as Option 3 (namely a
reinforced and concrete filled cavity wall for the NW Unit
where it faced the boundary and the Retaining Wall); and
4. the last paragraph quoted in [59] not against a bullet point
(namely the use of a reinforced core-filled block construction)
as a variation of Option 3.
53 TB 49.
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61 Mr Lalli's evidence was that the rotation would have started from
the Retaining Wall's construction and was slow-moving or moving at a
glacial speed.54 I accept that evidence.
62 In addition to the Engineer's 4 October 2017 email, Mr Lalli's
evidence was that the absence of the backing blocks meant that the wall
was 'structurally inadequate',55 and that injecting grout underneath the
Retaining Wall but not behind it would not prevent continued
rotation.56
63 Further, his evidence was that if there was continued rotation, that
may eventually lead to the Retaining Wall touching the new building
and loading it.57 This is to use 'loading' in the second sense I identified
above. I accept this evidence.
64 Mr Lalli's evidence was that the two Options 3 provided were
about strengthening the (western-most) wall of the NW Unit, which
could take the load of the rotating Retaining Wall if it eventually
touched the NW Unit.58
65 Mr Parin, in cross-examination, agreed that Mr Lalli had proposed
grout injections on the neighbour's side as a solution, but that was
rejected by Mr Naoum because he did not want the trees on his property
to die, and as a result he was opposed to that proposed injection.59
66 Mr Parin accepted that Mr Lalli told him that if the grout injection
from the Property (which had been included in the Engineer's Drawings
Rev 3) was the only work done, there was a risk that the Retaining Wall
would continue to rotate.60
67 Mr Parin also accepted in cross-examination that Mr Lalli had put
another option to him, which was a different cavity wall for the
proposed NW Unit which would be wider than that designed in the
Engineer's Drawings Rev 3.61
68 As to Option 3 in the last bullet point quoted in [59] above,
Mr Parin described it as not his preferred option.62 But, significantly,
54 ts 423.
55 ts 423.
56 ts 425.
57 ts 425.
58 ts 426 - 427.
59 ts 218, 228.
60 ts 220 - 221, 226.
61 ts 221.
62 ts 227 - 228.
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Mr Parin also accepted that it was his choice not to do the variation of
Option 3.63 Mr Parin, later, accepted that he had ruled out Option 3 in
October 2017.64
69 Mr Parin's evidence was that the wider, different cavity wall
would make the construction non-compliant with the relevant building
or residential code.65
70 In closing, the plaintiffs submitted that Mr Parin 'wasn't happy'
with Option 3 because it would affect the size of the storeroom and that
was effectively not an option.66
71 Mr Parin says he discussed that with Mr Germano, who told him
that because the storeroom was already at a minimum size or
dimension, other amendments would have to be made to the design.
Mr Parin did not request, at any time, that Mr Germano make any such
amendments.67
72 Mr Parin accepted, and I find it to be the case, that he knew, at
least from the Engineer's 4 October 2017 email, that the Retaining Wall
had no row of backing blocks behind it (on the neighbour's side). I find
that remained the case notwithstanding the subsequent Engineer's
Drawings Rev 5 - Rev 8 which showed a backing block on the detail on
sheet 3 of each.68 It was made plain in the plaintiffs' closing
submissions that the subsequent inclusion of the backing block on the
detail in Engineer's Drawings Rev 5 - Rev 8 was not relied on by them
as misleading or deceptive conduct.69
73 I find that what is recorded at paragraphs [65] - [72] above reflects
Mr Parin's beliefs and understandings from some time on or after
2 October 2017 (but before the slab was poured at the NW Unit which
was towards the end of November 2017).
74 As at 2 and 4 October 2017, it is important to note that no
significant works, preparatory or otherwise, had occurred at the site.
For example, no slab had been poured.
63 ts 227, 529.
64 ts 286.
65 ts 222, 228, 285, 286.
66 ts 506. See also Mr Parin's evidence at ts 185.
67 ts 222 - 223, 228, 529.
68 ts 223 - 224.
69 ts 541 - 542.
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75 The plaintiffs pleaded by SOC [18C] that shortly after the meeting
on 2 October 2017:
1. the Engineer 'authorised, permitted or gave directions to' the
Builder to commence construction of the Development;70 or
2. alternatively, after the Builder commenced construction, the
Engineer did not advise the plaintiffs that the deficiencies in the
Retaining Wall could not be, or had not been, rectified and that
construction should not proceed until the deficiency in the
Retaining Wall had been rectified.71
76 With the plaintiffs only relying on the Engineer's 15 January 2018
email at trial, it is difficult to discern any remaining significance of
SOC [18C.1] and SOC [18.2].
77 Indeed, SOC [18C] does not now appear to be relied upon by the
plaintiffs in their cause of action against the Engineer.72 That is perhaps
just as well as the plaintiffs would have faced both a factual problem
with the pleas (i.e., there is no evidence that the Engineer did any such
thing) but also, as will be noted, there was no case pleaded against the
Engineer in respect of which these factual matters could have
constituted a breach or breaches on the part of the Engineer.
78 And further, in any event, Mr Parin accepted that he was the only
person who could authorise variations to the work and that they could
not be authorised by the Engineer.73
79 An example of Mr Parin seeking to be careful with his answers so
as not to, to his perception, damage his case was provided by an
exchange with counsel for the Builder, prior to him settling his claim
against it. Whilst being questioned about the meeting on 2 October
2017, Mr Parin was asked whether he was responsible for decisions on
the Property concerning the Retaining Wall, and initially responded that
he was responsible.74
80 Mr Parin then sought to say that the Builder was responsible.75
And Mr Parin, non-responsively, then sought to say that he would only
70 SOC [18C.1].
71 SOC [18C.2].
72 Plaintiffs' closing submissions [10].
73 ts 178.
74 ts 181, 182.
75 ts 181.
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have made decisions based on the advice from the Engineer.76 When
that was sought to be clarified with him, he said that he did not
understand the question.77
81 On 5 October 2017, there was a meeting between Mr Parin,
Mr Lamattina and the neighbour.78
82 Mr Parin's evidence initially was that he did not recall that
meeting79 but he did remember it after being shown an email from the
neighbour of 18 October 2017.80 I return to that email below.
83 On 9 October 2017, the Builder sent an email to Mr Parin at
7.59 am.81 The email is of some significance, and I have quoted it in
full below:
As a follow up to our discussions on Saturday the situation that we are
faced with can be summarised as follows;
• Engineer has assessed the last 12 l/m of the limestone retaining
wall as insufficient to retain the soil from the neighbouring
property and in general the retaining wall overall where it is 3 or
more blocks high has not been built to an appropriate standard.
• The installation of grout injection will not prevent the retaining
wall from continuing to slide or rotate.
• A proposed solution for the existing retaining wall is to grout
inject on the neighbours [sic] side to stabilise it but this has been
rejected by the neighbour at this stage.
• As the builder of your project I am obliged to deal with this
issue prior to proceeding with the excavation works.
Of the solutions that we presented to Arthur (owner of neighbouring
property) we discussed the following;
1. Grout Blocking of retaining wall – this was rejected.
2. Installation of concrete cavity filled wall to the boundary up to
the height of the top of retaining wall – you did not prefer this
solution.
76 ts 182.
77 ts 182.
78 TB 63 at PDF page 2l; ts 183.
79 ts 183.
80 TB 63 at PDF page 2.
81 TB 66.
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3. Reinforcing the existing retaining wall with limestone
back-blocking from the neighbours [sic] side – this was rejected.
4. Installing a separate retaining wall in front of the existing
retaining wall – this is being investigated further today to ensure
that we can fit it in.
It was apparent from Arthur that he did not want to disturb his side of
the fence and was not prepared to contribute financially to the
remediation of his retaining wall.
The liabilities as we understand them from the advice received to date is
as follows;
1. Existing retaining wall – this is the sole responsibility of Arthur
to the extent that our works do not affect it.
2. Construction to mitigate this risk – is the responsibility of the
Builder:
a. Costs associated with this change is the responsibility of
you the client
i. Should Arthur refuse to participate financially,
we understand that you are able to claim these
costs from him as you have been compelled
contractually to deal with the matter.
Our action plan this week is as follows;
1. Complete the grout injection as originally specified – in
speaking with the retaining wall contractor, he requires this to be
done in any case to mitigate risk of the existing retaining wall
moving.
2. Agree a retaining wall design with the engineer to install
between the existing retaining wall and the building.
Overall, we are relying on you to deal with Arthur to agree an outcome
that suits this situation. From a commercial stand point should
discussions be protracted, then we will proceed with an alternative
solution which enable us to continue with the works and in doing so we
will be mindful of costs at all times.
I will be on site after my meeting with the engineer after which we will
prepare our advice on the options that we can proceed with.82
84 Mr Parin was taken to the first [2] in that email83 which referred to
the installation of concrete cavity filled wall in the unit in the
82 TB 66.
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north-west part of the Property.84 Rather than immediately accepting
that he had rejected that solution, Mr Parin adopted the more passive
voice that the option 'wasn't a preferred option' because there were
issues surrounding the minimum size of the storeroom.85
85 That reflected, to my observation, Mr Parin's attempts to avoid
answering directly the question of whether he had decided not to pursue
Option 3 by describing it passively as not the 'preferred option' so as to
avoid, to his perception, weakening his own case.
86 Mr Parin was asked in cross-examination whether the Builder, in
the last two paragraphs of that email, was telling him that it would
continue to build without a solution having been found to the concerns
about the Retaining Wall.86 Mr Parin did not accept that the Builder
could start building without solving the issue of the Retaining Wall.87
And yet, clearly to Mr Parin's knowledge, I find that is what happened,
without any complaint by Mr Parin.
87 On 9 October 2017, Mr Lamattina sent an email to the Engineer at
8.34 am (copied to Mr Parin).88 Mr Lamattina's email was sent as a
response to the Engineer's 4 October 2017 email.89
88 Mr Lamattina's 9 October 2017 email relevantly said:
After meeting with David (Client) and Arthur (Neighbour) last
Wednesday, it is apparent that Arthur is not interested in participating
financially to deal with the failings of his retaining wall and at this stage
will not allow us to deal with it from his side.
David would prefer not to install a concrete filled cavity wall as part of
the building so I am left trying to find a solution that fits within
90-100mm!
Are we able to catch up this morning for a quick chat on possible
solutions?
Option 1: I have attached an idea that possibly might work which
incorporates Tbar Posts which is partly cut into the Limestone Blocks
with concrete panels in between.
83 TB 66 at PDF page 1; ts 185.
84 ts 185.
85 ts 185.
86 ts 186.
87 ts 186.
88 TB 64.
89 TB 49 and it then forms part of TB 64.
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Option 2: Speaking with John from BMC, his retaining wall solution
uses 200UB posts but as an alternative, we would like to incorporate a
smaller 150UB but he requires engineers guidance on this.
Our intention is merely to install a retaining wall to protect the 8m of
boundary wall that we are building for Unit 4 at the rear given that the
remaining limestone retaining wall appears to have stood the test of
time over the last 10+ years.90
(emphasis in the original)
89 Mr Parin accepted the statement '[Mr Parin] would prefer not to
install a concrete filled cavity wall as part of the building'91 was
consistent with his discussions with the Builder.92
90 And further, it was accepted in closing by the plaintiffs that the
first two paragraphs written by Mr Lamattina in his email of 9 October
201793 were accurate.94
91 I find that Mr Lamattina accurately recorded Mr Parin's
'preference', and find that Mr Lamattina's statement that he was trying
to find a solution of 90 - 100 mm is further evidence that Mr Parin had
not accepted Option 3, in either of its iterations, by this time on
9 October 2017.
92 As referenced in 'Option 1' in the 9 October 2017 email,95
Mr Lamattina attached to his email two drawings he had made.96
93 By unchallenged evidence, Mr Lalli described in more detail the
options being put forward by Mr Lamattina in his 9 October 2017
email.97
94 Mr Lalli did not recommend either of the solutions as drawn by
Mr Lamattina,98 although Mr Lalli was unable to say when he had
effectively rejected those solutions. Mr Lamattina's evidence was to
90 TB 64 at PDF page 1. It is to be noted that these two options are different from the three options
I identified above.
91 TB 64 at PDF page 1.
92 ts 186.
93 TB 64 at PDF page 1.
94 ts 516.
95 As quoted in [88] above.
96 TB 64 at PDF pages 3 and 4.
97 Exhibit H [63] and [64].
98 Exhibit H [64] - [66].
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similar effect.99 Mr Parin's evidence, also, was that Mr Lalli had
rejected that option put by Mr Lamattina.100
95 I find that at about 9 October 2017, Mr Parin knew that Mr Lalli
had, in effect, rejected Mr Lamattina's options in Mr Lamattina's email
of 9 October 2017, including those captured in his drawings.
96 Mr Parin's evidence in cross-examination, following receipt of the
Builder's 9 October 2017 email at 8.34 am, was that no one ever came
back to him with a 'solution'.101
97 Subsequently to those two emails, on 9 October 2017, Mr Parin,
Mr Lamattina and Mr Lalli met at the Builder's office.102
98 Mr Parin, in cross-examination, was asked questions about what
was said at the meeting of 9 October 2017.103
99 Mr Parin denied that the outcome of the meeting with
Mr Lamattina and Mr Lalli on 9 October 2017 was that Mr Parin should
continue to monitor the rotation of the Retaining Wall.104
100 On 9 October 2017 at 5.41 pm the Builder sent to Mr Parin an
email105 which, on its face, was sent after the meeting on 9 October
2017. Mr Lamattina in that email stated, relevantly, the following:
From our meeting today I have the following outcomes;
1. We will proceed with the construction programmed as designed
with regard to the retaining wall issue being reviewed by MA
Lalli with the following clarifications;
1. We will proceed to cover the grout block area with an
additional leaf of brickwork to the outside face of the
ground floor in lieu of installing the flashing as noted on
the plans.
2. I will confirm with John from BMC the need to bridge the
gap between the brickwork and the grout block face.106
99 ts 461 - 462.
100 ts 232, 278.
101 ts 231.
102 SOC [18DAA]; Defence [9.1(j)].
103 ts 231, 232, 234 - 235. Indeed, Mr Parin was cross-examined on other emails which were sent or
exchanged on 9 October 2017: ts 229.
104 ts 242 - 243.
105 Email between Mr Parin and Mr Lamattina dated 9 October 2017 (Exhibit I).
106 Exhibit I.
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101 That email was not copied to the Engineer, and it was not put to
Mr Lalli in cross-examination. I find that the Builder's 9 October 2017
email sent at 5.41 pm was never sent to the Engineer and that the
Engineer did not have any knowledge of its contents.
102 The plaintiffs had not discovered that email (from the Builder to
Mr Parin sent on 9 October 2017 at 5.41 pm). That is notwithstanding
that Mr Parin was asked questions in cross-examination about what had
occurred in that meeting, and indeed, about other emails of that day.
It was produced in Court for the first time in the cross-examination of
Mr Lamattina and became Exhibit I.
103 Counsel for the plaintiffs told me that Exhibit I had been emailed
to him on Sunday, 24 May 2026, the day before it was put to
Mr Lamattina in cross-examination. It was unclear whether the
plaintiffs' representative had prior notice of it during the course of the
proceedings before the trial. No explanation was proffered as to why it
had not been discovered.
104 Mr Parin accepted that at this time on 9 October 2017 the
neighbour had rejected any action or activity on his property.107 I accept
that to be the case. Further, I find that was Mr Parin's and the Builder's
understanding by that date, if not well before.
105 Mr Parin's evidence was that he did not receive any drawings or
any other options for stabilising the Retaining Wall after 9 October
2017.108 I find that to be the case.
106 Further, Mr Parin's evidence was that there was no written
communication from him to either the Builder or the Engineer pursuing
any extra or different option between 9 October 2017 and 15 January
2018.109 I find that to be the case.
107 I find that work proceeded at the Property from 9 October 2017
with Mr Parin's knowledge and acceptance that Option 2 from the
Engineer's email of 4 October 2017 was being implemented, without
any other 'solution' being awaited or expected.
107 ts 185; Defence [9.1(d)].
108 ts 278.
109 ts 281.
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108 On 9 and 10 October 2017, BMC Grout Injection Specialists Pty
Ltd (BMC) carried out the microfine cement grout injection under the
Retaining Wall (Grout Block).110
109 It was not in dispute, and I find, that the Grout Block was injected
from the Property's side under the Retaining Wall on the neighbour's
side.
110 I find that BMC was a specialist operator in chemical grout
injection and that the Engineer had, in effect, no role in BMC's works
on 9 and 10 October 2017.111 There was no challenge to these
propositions by the plaintiffs.
111 On 11 October 2017, there was an exchange of emails between the
Engineer and Mr Parin.112
112 The first was sent by the Engineer at 1.05 pm and stated:
Confirming that the post and panel wall in front of the grout stabilised
section below the existing limestone retaining wall is used for
protecting the exposed grout block face from the weather and is not a
"retaining wall" per se.
The option of using a galvanised steel post set into a concrete
encasement, sized as per our detail, is considered to be adequate.
I would suggest a 100UC14.8 as a post and embed say 75% of the
height above the ground. (The 100UC14.8 is the smallest UC that is
made.)
Pouring a cement slurry behind the panels to ensure no voids behind
is ideal.113
113 Mr Parin responded on 13 October 2017 and said:
Thanks for your advise [sic], we are looking to maximise the bin
storage area.
Would it be possible to use 75mm PFC welded back to back with 75%
embedment invaded in concrete.114
114 The Engineer's response on 13 October 2017 is not presently
material.
110 SOC [18DAB]; Defence [18C.3].
111 Defence [18C.4]; Exhibit H [81] - [82]; ts 248.
112 TB 68.
113 TB 68 at PDF page 2.
114 TB 68 at PDF page 1.
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115 Without making too much of Mr Parin's email quoted immediately
above, it is indicative of the fine margins at the Property and around the
NW Unit.
116 As noted above, following the meeting on 5 October 2017,
Mr Naoum, on 18 October 2017 sent an email to the Builder which
said, in part:
As we have not had any response from you or the Owner relating to the
limestone foundation discussed at the above meeting we assume you are
both satisfied with it's [sic] condition, particularly since major
earthworks have since commenced and are well in progress.
Would you be kind enough to confirm this please?115
117 On 20 October 2017 at 12.39 pm, the Builder sent an email to
Mr Naoum which was copied to John Velios, a structural engineer
retained by Mr Naoum, and to Mr Parin.116 That email stated:
We have successfully commenced preliminary works by undertaking
chemical injection and partial siteworks and yesterday the grout works
were given the all clear by our subcontractors.
Whilst we are progressing carefully to proceed with our works, we
maintain that we are not taking responsibility for the limestone wall
should it continue to fail without impact from our works.
We have undertaken a dilapidation assessment and will continue to
monitor the wall throughout the course of construction. Beyond this,
I understand that David Parin will continue to monitor the limestone
wall for signs of further movement.
I trust that this adequately deals with any concerns regarding our works
in relation to our previous advice detailing the inadequate nature of
your retaining wall adjacent to our building works.117
118 Mr Velios then responded to that email on the same day.118
Relevantly, that email stated:
5. David Parin is not to monitor the limestone retaining wall – this
is to be undertaken by the suitably qualified, professional
115 TB 63 at PDF page 2.
116 TB 63 at PDF pages 1 - 2. This email was part of a chain which had started on 7 October 2017 with an
email from the Builder to the neighbour; TB 63 at PDF page 3.
117 TB 63 at PDF page 2.
118 TB 63 at PDF page 1.
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independent firm engaged to undertake the dilapidation survey.
(please provide details)119
119 Mr Parin denied that he had discussed that he would monitor the
wall with Mr Lamattina or Mr Lalli,120 notwithstanding the text of the
Builder's email of 20 October 2017.121
120 Mr Parin sought to explain why he had not challenged the
statement in the Builder's email of 20 October 2017 by pointing to
Mr Velios' response, which stated that he (Mr Parin) was not to monitor
the wall.122 Mr Parin then sought to give evidence that he did not know
'what monitoring means'.123
121 In closing, the plaintiffs submitted that Mr Parin had not
responded to the statement made by the Builder's email as to his
monitoring because he was leaving that issue at the rejection made by
the neighbour's engineer.124 I do not accept that explanation.
122 To my observation, for Mr Parin to have left the issue for that
reason would not be in keeping with the force of his personality and the
concern for detail that he exhibited in respect of the Development.
123 There are two matters of significance to Mr Parin's evidence about
whether, following the site inspection on 2 October 2017 or the
Engineer's 4 October 2017 email or before the Builder's email of
20 October 2017, he was to monitor the Retaining Wall going forward.
124 The first is in the way he gave that evidence and whether it reflects
more generally on the reliability of his evidence in contested matters.
125 The second is that if Mr Parin had been told to, and had agreed to,
monitor the Retaining Wall going forward it would support the finding
that he had made the decision in October 2017 to continue with the
Development notwithstanding that the problems with the Retaining
Wall had not been resolved and that he had decided not to adopt a
different design of the western-most wall of the NW Unit.
119 TB 63 at PDF page 1.
120 ts 183, 244.
121 TB 63 at PDF pages 1 - 2.
122 ts 245.
123 ts 245.
124 ts 539.
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126 In my view, the surrounding circumstances and plausibilities
support a finding that Mr Parin was both told to monitor the Retaining
Wall by the Engineer and agreed to do so. They are:
1. the option to remedy the Retaining Wall from the neighbour's
side was not available;
2. Mr Parin had rejected any option to modify the design of the
western-most wall on the NW Unit;
3. the Engineer's advice that the Retaining Wall would continue to
rotate towards the Property; and
4. that the rotation was occurring at a slow or glacial pace.
127 In my view, it makes complete sense, and is the only plausible
conclusion, for the Engineer to have recommended that the Retaining
Wall continue to be monitored into the future to ensure that if the
rotation continued then further steps could be taken before the
Retaining Wall touched the Development.
128 It is also of some significance that Mr Lalli's evidence about the
advice he gave on monitoring (as noted in [53] above) was not
challenged in cross-examination.
129 It is not quite the case that nothing else could be done in October
2017. That is because, as was ultimately the case, Mr Parin could have
pursued the avenue of persuading the City of Stirling to take action
against the neighbour in respect of the Retaining Wall. Rather, it was a
case that in the absence of his doing that there was nothing else to do in
the circumstances set out in [126] above.
130 Following a request from Mr Parin125 the Engineer sent him an
email 23 October 2017126 which stated:
Further to our site inspection on the 2nd October of the boundary
retaining wall, together with your neighbour and the builder, Michael
Lamattina, we confirm that the limestone retaining wall on the western
boundary is considered to not be structurally adequate for the height
retained.
The wall constructed from 350 x 350 x 1000 reconstituted limestone
blocks, exhibited cracking and a slight rotation at one location to the
rear of the site.
125 Exhibit H [86] - [87].
126 TB 70.
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Further, the wall had little to no embedment and was constructed using
only one leaf of blocks with no backing blocks.127
131 It was not suggested that any of the contents of this email from the
Engineer was new information for Mr Parin or was not known
previously by Mr Parin.
132 Mr Parin's evidence was that he did not recall asking Mr Lalli to
send him that email.128 It is unclear from the evidence why Mr Parin
requested this email from the Engineer and I make no finding as to why
he did so at that time.
133 I find that no other 'option' was put to Mr Parin after October 2017
to deal with the Retaining Wall or to change the design construction of
the western-most wall of the NW Unit. I understood that was accepted
by the plaintiffs in closing.129
134 From late October 2017, the Builder carried out works at
the Property.130
135 On about 2 November 2017, the Builder provided Mr Parin with a
construction program for the building work131 which provided for the
building work to be commenced on about 6 November 2017 and
completed by about 11 January 2019. This was defined by the plaintiffs
as the Construction Program.132
136 It appears to be common ground that the Builder constructed the
'post and panel wall' on the Property in front of the Retaining Wall
which had been injected.133
137 By about the end of November 2017, the footings and slabs were
poured, including for the NW Unit.134
138 On 19 December 2017, Mr Parin sent an email to the Builder,
which referred, amongst other things, to the slabs having been
127 TB 70.
128 ts 252.
129 ts 513.
130 SOC [18DAE] - [18DAG].
131 TB 82; SOC [18].
132 SOC [18].
133 SOC [18DAC].
134 TB 88 - TB 92; Exhibit A [73].
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poured.135 The email contained a number of items which were of
concern to Mr Parin.
139 At point 6 of his 19 December 2017 email,136 Mr Parin said:
'Insufficient Chemical injection to the Northern Western boundary and
areas of undermining to existing adjoining retaining wall.'137
140 Mr Lamattina responded on 22 December 2017138 and
incorporated his responses into Mr Parin's email by text in a differently
coloured font. In responding to Mr Parin's point 6, Mr Lamattina said:
This query has been considered and primarily, multiple inspections
from BMC including the attached report confirming BMC are satisfied
with the installation of their injection. Subsequent steps will be parging
and waterproofing of the brick wall up to the level of the grout block
with a protective layer of coreflute and mortar/slurry fill of the cavity
between these two faces. We are satisfied that in the event that the grout
block fails we have the recourse with their insurers but nevertheless we
provide no undertakings that the retaining wall itself will not continue
to move towards your building.139
141 Mr Parin accepted in cross-examination that he was not surprised
at that time that there was a continuing risk that the Retaining Wall may
continue to move towards the Property as previously identified by
Mr Lalli.140
142 Mr Parin's evidence then was:
In January 2018 I was looking at the works under the Retaining Wall,
where the grout injection had not been covered and contacted Mr Smith
to ask if the Engineer could do a site inspection before the brickwork
was started to cover the area to make sure it was alright to continue the
work as planned.141
143 Mr Parin's evidence initially in cross-examination was that he had
asked Mr Lalli to come to the Property because of his concerns about
the 'pockets' he had identified in the Grout Block and the undermining
135 TB 97 at PDF page 2 and following.
136 TB 97 at PDF page 3.
137 TB 97 at PDF page 3.
138 TB 97.
139 TB 97 at PDF page 3.
140 ts 261.
141 Exhibit A [78].
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of the Retaining Wall,142 and that his concerns were based on the
appearance of the face of the Grout Block.143
144 On the second day of his cross-examination, Mr Parin's evidence
was somewhat different in that he said that the meeting on 15 January
2018 was due to Mr Lamattina's response (of 22 December 2017)144
to Mr Parin's point 6.145 I consider this difference is not of importance.
145 On 15 January 2018, Mr Lalli conducted an inspection of the
Property with Mr Parin and Mr Smith.146
146 I find that the state of the Property, relevantly, at the time of
inspection on 15 January 2018 was as per photos taken by Mr Parin on
the afternoon of 16 January 2018.147
147 For present purposes, the state of the Property was that:
1. the slab for the NW Unit had been poured, and the plumbing
stubs were part of the slab;148
2. the post and panel wall had been installed; and
3. the Grout Block was still exposed immediately at the western
side of the poured slab and below the Retaining Wall.
148 Mr Parin's recollection of the meeting at the Property on
15 January 2018 was limited to there having been three items
discussed, namely the Grout Block under the Retaining Wall, the
Retaining Wall and the post and panel wall.149
149 It is not particularly significant what any one witness remembers
of the meeting on 15 January 2018 because of the Engineer's
subsequent email.
150 On 15 January 2018, after the site inspection, the Engineer sent an
email to the Builder at 11.40 am, which was forwarded to Mr Parin
shortly afterwards (Engineer's 15 January 2018 email).150
142 ts 261 - 262, 279 - 280.
143 ts 262.
144 TB 97 at PDF page 3.
145 ts 279 - 280.
146 SOC [18DA]; Defence [18DA].
147 TB 102 - 104.
148 ts 284, ts 285.
149 ts 172.
150 TB 101.
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151 The Engineer's 15 January 2018 email is central to the plaintiffs'
case against the Engineer. It read in full as follows:
Further to the site inspection earlier this morning, it is understood that
areas of the grout injection under the existing limestone retaining wall
to the left rear of the above site, particularly adjacent to the proposed
cavity wall on the boundary, has isolated small areas where the grout
may not have fully penetrated.
I understand that the grout block in this area has a minimum of 300mm
embedment below the footing of the residence. The depth of the grout
block under the limestone wall could not be confirmed.
Providing the depth of the grout block under the wall is as proposed by
Bradford Retaining, then the long term stability and durability of the
grout block and the limestone retaining wall over is considered to be
structurally adequate.
In order to enhance the long term durability of the grout block, it is
proposed that the remaining gap between the external leaf of the cavity
wall and the grout block be filled with a sand/cement slurry.
Further, where the concrete post and panel system has been used for
protection of the grout block in front of existing limestone retaining
wall, sand has been used as the back fill for the remaining gap.
It is suggested that to prevent any possible erosion of the sand back fill,
the top 150mm of the sand fill be removed and replaced with a
sand/cement cream mortar.151
(emphasis added)
152 The emphasised words in the above quotation, as will be seen, are
essentially the whole of the plaintiffs' case against the Engineer, and I
will refer to them from here as the Statement.
153 Mr Parin's evidence was that the Statement was saying that both
the Grout Block and the Retaining Wall separately were 'structurally
adequate'.152 I took that to be evidence as to how Mr Parin read the
Statement at the time.
154 In cross-examination, Mr Parin did not accept that the Statement
started with a 'proviso' which represented some qualification to the
Statement.153 To my observation, in giving this evidence Mr Parin very
much appeared to be trying to hold the line against the plain words
151 TB 101.
152 ts 265 - 267.
153 ts 265, 266.
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because he perceived an acceptance of the proposition being put to him
would weaken his case. With respect, I would not accept that Mr Parin
now, or then, read the plain words and did not understand that Mr Lalli
was stating expressly an assumption on which the rest of the Engineer's
15 January 2018 email was written.
155 Mr Parin's evidence was that there was no discussion with
Mr Lalli on 15 January 2018 as to how the depth of the Grout Block
under the Retaining Wall could be confirmed.154 Mr Parin's evidence
was to the effect that he did not seek confirmation (from anyone) as to
the depth of the Grout Block following receipt of the Engineer's
15 January 2018 email.155
156 There was no evidence of Mr Parin doing anything in response to
the Engineer's 15 January 2018 email or to the Statement more
specifically.
157 I consider separately below whether the Statement was relevantly
misleading and deceptive or was likely to mislead and deceive.
158 What, if any, reliance the plaintiffs placed on the Engineer's
15 January 2018 email is contentious and is considered below.
159 It appeared to be common ground that the Builder completed the
brickwork to plate height on the ground floor around the end of March
or beginning of April 2018.
160 On or about 23 May 2018, the plaintiffs served a notice to remedy
breaches of the Building Contract on the Builder.156
161 On 8 June 2018, the plaintiffs served on the Builder a notice
purporting to terminate the Building Contract.157
162 The Builder at the time did not accept that the plaintiffs were
entitled to terminate the Building Contract.158 Rather, the Builder
treated the 'purported' termination by the plaintiffs as a repudiation of
the Building Contract, which it accepted and so, brought the Building
Contract to an end.159
154 ts 269.
155 ts 269 - 270.
156 TB 143; Exhibit A [102]; SOC [44]; first defendant's defence [61].
157 TB 168; Exhibit A [108]; SOC [46].
158 First defendant's defence [66(a)].
159 First defendant's defence [66(b) and (c)].
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163 As noted, in the course of the trial the plaintiffs and the Builder
effectively settled the claim and counterclaim between them, so I do not
need to determine how the Building Contract came to an end.
164 Nonetheless, it was common ground between the plaintiffs and the
Builder while the claim against the Builder was ongoing (and also
between the plaintiffs and the Engineer for that matter) that the
Building Contract came to an end on 8 June 2018. Whatever the precise
mechanism that led to the termination of the Building Contract, it is
clear, and I find, that its termination was initiated by Mr Parin.
165 On 25 June 2018, these proceedings were commenced against the
Builder by writ.
166 The Builder filed a Notice of Cessation with the City of Stirling
dated 8 November 2018.160
167 Mr Parin did not engage another builder to complete the
Development after the termination of the Building Contract.161
168 There was no evidence that Mr Parin took any steps in relation to
the Property following the termination of the Building Contract prior to
about 20 November 2018.162 I find accordingly.
169 On about 20 November 2018, Andrew van der Meer, a structural
engineer, attended the Property and advised Mr Parin that the Retaining
Wall was rotating towards the NW Unit on the Property163 and sent a
report dated 12 December 2018 to the plaintiffs.164
170 Mr Parin gave very general evidence of attending the Property on
20 November 2018 with Mr van der Meer where various issues were
discussed, the main item of which was the Retaining Wall.165
171 It is significant to note here that until shortly before the trial the
plaintiffs were proposing to call Mr van der Meer to give evidence
including as to the reports he had prepared for the plaintiffs. It is now
unimportant whether the plaintiffs had proposed to lead that evidence
as expert opinion evidence or to lead evidence from Mr van der Meer as
a witness of fact, or some combination of the two.
160 TB 171.
161 ts 173, 302.
162 ts 533 - 534.
163 SOC [18DCD].
164 TB 183; SOC [18DCD].
165 ts 172.
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172 The Court was told on 27 February 2026 that Mr van der Meer
would not be called as a witness in any capacity. Further, the plaintiffs
accepted that any reports of his sought to be tendered would be
admitted for the fact, if relevant, that they were made at the time rather
than being led as to the truth of their contents or as being admissible as
expert opinion evidence.166
173 The plaintiffs confirmed in closing that they were not relying on
Mr van der Meer's report or anything he said to establish the truth of
what was there contained or said.167
174 The effect of that is that there is no evidence before the Court
establishing that anything contained in a report or statement made by
Mr van der Meer was evidence as to its truth - whether by expert
opinion evidence, or evidence going to a matter of fact.
175 On about 14 December 2018, Mr Parin communicated with the
City of Stirling.168 That communication with the City of Stirling by
Mr Parin attached the Engineer's 4 October 2017 email and
Mr van der Meer's report of 12 December 2018.
176 Again, where Mr van der Meer was not called, his report gains no
more weight by having been sent by Mr Parin to the City of Stirling.
177 In cross-examination, Mr Parin was questioned as to why he had
not sent a more complete account of the situation to the City of
Stirling.169 However, in the circumstances, I consider I do not need to
reach any view about Mr Parin's motivations at that time.
178 On about 28 September 2021, the City of Stirling issued a
Building Order to the neighbour in relation to the Retaining Wall.170
179 Further, the following notices were pleaded by the plaintiffs as
being issued by the City of Stirling, namely:
1. a notice of withdrawal of building approval certificate dated
25 March 2022;171 and
2. a second Building Order on about 20 April 2022.172
166 ts 67.
167 ts 543.
168 TB 184; SOC [18DCE].
169 ts 297.
170 TB 193; SOC [18DD]; Defence [18DD].
171 TB 195; SOC [18DE].
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180 It is pleaded that the owners of the neighbouring property complied
with the second Building Order.173 That was not in dispute, and I find it
to be so.
181 As noted above, on 25 March 2022, the City of Stirling issued a
notice by which it withdrew the Building Approval Certificate in
relation to the Retaining Wall.174 This notice identified that the
Retaining Wall did not have backing blocks and was rotating and
moving in an easterly direction.
182 I find, as the plaintiffs pleaded, that the Property was sold in July
2025 for $2,100,000 to Finnigan Group Pty Ltd and Converge Site
Service Pty Ltd.175
183 I find that the construction at that time remained at the stage of
completion it had been when the Building Contract was terminated on
8 June 2018.176
Mr Parin as a witness
184 As may be seen from the above, there were only a few issues of
fact which turned on contested evidence. Consequently, there are only a
few areas in respect of which I need to assess Mr Parin's credibility and
reliability as a witness.
185 Mr Parin, in giving his evidence, reflected his strong belief in, and
commitment to, his case. He had an inclination to argue that case with
questioning counsel. That tendency militated against the acceptance of
his evidence on contested matters as being reliable. However, for the
most part where I have not accepted Mr Parin's evidence it is because
of the contemporaneous documents and surrounding circumstances.
The plaintiffs' case against the Engineer
186 The plaintiffs' case against the Engineer is that the Statement made
the following representations; namely that:
18EA.1 the deficiencies in the Retaining Wall had been rectified, so
that it was structurally adequate by at 15 January 2018;
172 TB 196; SOC [18DEA].
173 SOC [18DF].
174 TB 195.
175 TB 202; SOC [48]; Defence [48].
176 SOC [49]; first defendant's defence [71].
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18EA.2 it was acceptable for the First Defendant to continue
construction of the Development without the Second
Defendant strengthening the design to deal with any loading
of the new construction;
…
(defined in the SOC as Engineer Representations).177
187 As will be seen, it does not make any difference to the success of
the plaintiffs' case, but there is a third representation pleaded at
SOC [18EA.3] which is not within the defined Engineer
Representations; namely that: 'the Development had been constructed
in accordance with the [particularised] structural drawings.'
188 As was implicit in the pleas at SOC [18EA.1] and [18EA.2], but
made express in the plaintiffs' opening submissions at [9],178 and the
plaintiffs' closing submissions,179 the plaintiffs' case against the
Engineer is narrowly focused on the Engineer Representations which
were pleaded to be made by the Statement, which, as quoted above,
read:
Providing the depth of the grout block under the wall is as proposed by
Bradford Retaining, then the long term stability and durability of the
grout block and the limestone retaining wall over is considered to be
structurally adequate.180
189 It is significant to note that SOC [18EA] - [18G] only appeared in
their final form in the last iteration of the SOC, filed first as a minute on
20 April 2026. That makes a clear reading and understanding of aspects
of the final SOC difficult.181
190 The Engineer Representations are pleaded182 to have been made by
the Engineer 'acting' as per certain paragraphs in the SOC; and in
certain 'circumstances' as per other paragraphs of the SOC.
191 Turning first to the pleaded acts: a number were pleaded in SOC
[18EA] by referencing other paragraphs, but the majority of them were
177 See also SOC [18F]; these are denied by the Defence [18EA], [18F].
178 Plaintiffs' opening submissions.
179 ts 506.
180 TB 101.
181 See, for example, the difficulties identified in the second defendant's closing submissions [29].
182 SOC [18EA].
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not pressed by the plaintiffs by their closing submissions.183
The remaining are the following:
1. SOC [18DA]: this pleads that on about 15 January 2018, the
Engineer conducted a further site inspection with Mr Parin and
the Builder to inspect the Retaining Wall and provide advice in
relation it;
2. SOC [18DB]: this pleads that, after the site inspection, the
Engineer sent the 15 January 2018 email;184 and
3. SOC [18CB]: this pleads that the Engineer sent its 4 October
2017 email.185
192 Turning to the pleaded circumstances: they again were pleaded in
SOC [18EA] by reference to other paragraphs in the SOC. By the time
the plaintiffs' closing submissions were filed on 29 May 2026, a
number of those pleas were effectively abandoned.186 The remaining
circumstances (in which those pleaded acts occurred) are pleaded by
reference to:
1. SOC [3A]: which pleads that the Engineer was duly
incorporated and trading as Consultant Chartered Engineers;
2. SOC [3B]: which pleads that the Engineer was at all material
times engaged in trade or commerce; and
3. SOC [8A] - [8C]: these plead:
i. the Engineer's proposal sent to the plaintiffs on about
15 September 2025;187
ii. the scope of works agreed between the Engineer and the
plaintiffs;188
iii. statements made on the Engineer's website prior to its
engagement;189
183 Plaintiffs' closing submissions filed 29 May 2026 (plaintiffs' closing submissions) [10].
184 TB 101.
185 TB 49.
186 Plaintiffs' closing submissions [10] and [11].
187 TB 4; SOC [8A].
188 SOC [8B].
189 SOC [8C].
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iv. that the plaintiffs engaged the Engineer and reposed trust
and confidence in it;190 and
v. that between 11 November 2015 and 24 July 2017, the
Engineer prepared structural drawings, which were relied
upon by the City of Stirling to issue a building permit
dated 19 September 2017.191
193 The plea in SOC [18EA] had also sought to rely on the following
paragraphs of the SOC as relevant circumstances. However, they were
not included in the plaintiffs' closing submissions where they identified
the circumstances relied upon.192 Although I note them below, I have
treated them as having been abandoned by the time of the plaintiffs'
closing submissions. They were:
1. SOC [18A] - [18B]: these pleaded the site inspection on
2 October 2017 and the matters which it is pleaded the Engineer
identified on that date; and
2. SOC [18D] - [18E]: these are 26 paragraphs of the SOC, many
of which have subparagraphs within them. I have not attempted
to summarise them here, other than to note that they pleaded
matters from about 4 October 2017 until August 2023.
However, I note that the pleas in SOC [18EA] concern the
Engineer Representations per the Statement contained within
the Engineer's 15 January 2018 email.
194 Notwithstanding the complexity introduced by the chapeau to
SOC [18EA] of the SOC, ultimately the Engineer acting as per certain
paragraphs and making the Representations in certain circumstances as
pleaded added nothing to the plaintiffs' case nor to the determination of
the matter.
195 The plaintiffs pleaded that:
1. the Engineer Representations were misleading or deceptive or
likely to mislead or deceive: SOC [18F];193 and
2. by reason of the misleading or deceptive conduct the plaintiffs
suffered loss and damage.194
190 SOC [8D].
191 TB 44; SOC [8E].
192 Plaintiffs' closing submissions [10] and [11].
193 This plea is denied by the Engineer: Defence [18F].
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What the plaintiffs' case is not
196 It is, at this point, also important to be clear as to what does not
form part of the plaintiffs' case.
197 Mr Parin sought to give evidence that at different times from
4 October 2017 he was waiting on the Builder and, or, the Engineer to
propose to him a 'solution' to the problems identified by the Engineer's
4 October 2017 email.195
198 I do not accept that evidence from Mr Parin. Principally, that is
because Mr Parin at no stage sought any further solution or option from
the Builder or the Engineer. That is in circumstances where he was at
the Property on most days, if not daily, and was intimately concerned
with the Development. It is simply not plausible that if Mr Parin was
truly waiting on the Builder or the Engineer in such a material respect,
he did nothing to follow either of them up.
199 However, even if I were to accept that evidence and find that was
the case, the plaintiffs accepted in closing that there was no case put
against the Engineer that there was some positive duty to warn or
advise Mr Parin subsequently to October 2017, or at any time.196
200 Further, there was no pleaded case against the Engineer, nor the
Builder for that matter, that there was any duty, either contractual in
nature or at general law, to work on and, or, to provide to Mr Parin
some 'solution' to the problems identified by the Engineer's 4 October
2017 email.
201 And, naturally enough, if there was no such duty or obligation
then there could be no breach of the same.
202 Whether or not the Builder, via Mr Lamattina's communications,
indicated to the plaintiffs that it was seeking to find such a solution is
neither here nor there as against the Engineer.
203 The plaintiffs in their closing submissions appeared to make it
plain that they were not asserting that the Engineer had an obligation to
do something about a different design or construction plan in
January 2018,197 although there were hints throughout the plaintiffs'
194 SOC [18G]; see also SOC [51A]. This plea is also denied by the Engineer: Defence [18G] and [51A.3].
195 See. for example, ts 232.
196 ts 542 - 543.
197 ts 511.
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closing submissions at the idea that Mr Parin was relying on the
Engineer and/or the Builder to propose a solution.
204 As to the modified Option 3, the plaintiffs for the first time in
closing sought to advance the case that modified Option 3 could have
been built on the slab as poured without requiring further architectural
drawings.
205 In doing so, the plaintiffs sought to place great weight on one
answer of Mr Lalli in cross-examination198 I have set out the exchange
in full:
MR RUMSLEY: So that – effectively, the concrete-filled cavity is an
option?---
MR LALLI: Yes.
MR RUMSLEY: And then, another option is - - -?---
MR LALLI: Concrete block.
MR RUMSLEY: - - - the use of those core-filled core blocks?---
MR LALLI: That's correct.
MR RUMSLEY: And effectively, you have put both of those into this
communication?---
MR LALLI: That's right.
MR RUMSLEY: And the reason for the second was to deal with the
issue in relation to store size, so that you could carry out a solution, but
without the impact on the size of the room. Is that correct?---
MR LALLI: That's correct, yes. Yes.199
(emphasis added)
206 I do not think that answer of Mr Lalli's can support some
attempted re-formulation of the plaintiffs' case in closing. Firstly, that
case was not clearly articulated, if at all, in the SOC, the plaintiffs'
opening submissions, nor in their evidence. It is inconsistent with
Mr Parin's own evidence as outlined in [71] above. And, in any event,
Mr Parin had rejected both iterations of Option 3 as per his evidence
outlined in [68] above.
198 Plaintiffs' closing submissions filed on 29 May 2026 [24] and [62].
199 ts 427.
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207 It was accepted by the plaintiffs in their closing submissions that
they had not put to Mr Lalli200 that the second iteration of his Option 3
could have been built after 15 January 2018 and that the NW Unit
would have remained code compliant.201
208 If the plaintiffs sought to advance a case that, after the slab had
been poured, they could, and would, have altered the design of the
NW Unit so that its cavity wall was differently constructed and able to
withstand the load from the Retaining Wall rotating and leaning on it,
I consider that expert evidence would have had to be called that such a
re-design was possible and would be in keeping with the relevant
building or residential code.
209 Significantly and, with respect, correctly, counsel for the plaintiffs
did not contend that there was any evidence that Mr Parin had accepted
the second iteration of Option 3 (namely, the reinforced core filled
block construction).202 Indeed, as noted above, the evidence was that
Mr Parin had rejected that as well.
210 It must be remembered, also, that Mr Lalli gave that answer by
reference to the Engineer's 4 October 2017 email. It was not given in
response to any question as to what was possibly able to be done as at,
and from, 15 January 2018.
211 Another case not run by the plaintiffs was any case against the
Engineer in respect of the NW Unit being loaded.203 That meant,
absent the Retaining Wall rotating and touching the wall of the new
construction, there was no allegation put as to there being any loading
of the new construction by the neighbour's property and the Retaining
Wall as at October 2017 or January 2018. I have proceeded on
that basis.
212 That had the consequence, which was apparent from the SOC in
any event, that no case was advanced against the Engineer that the
design (to the extent represented by the Engineer's Drawings Rev 3)
was not adequate or breached some obligation owed by it to
the plaintiffs.204
200 ts 527.
201 ts 522.
202 ts 509.
203 ts 318.
204 ts 544 - 546.
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213 A further case not run by the plaintiffs is that, notwithstanding the
second of the Engineer Representations (pleaded in SOC [18EA.2]),
and as noted above, the Engineer had a responsibility, in contract or at
general law, to supervise the Builder in any way or authorise or permit
the Builder to conduct any of the building works in the Development.
Did the Statement make the Engineer Representations and were they
misleading or deceptive?
214 In its closing submissions, the Engineer relevantly submitted that
the Statement did not make the Engineer Representations.205 That is
because the Statement was made in the context of Mr Parin's concerns
as to 'voids' or 'pockets' visible in the face of the Grout Block.
The Engineer submitted that, in that context, the opinion provided by
Mr Lalli in the Engineer's 15 January 2018 email was limited to
'whether the voids represent any deficiency in the Grout Block.'206
215 I do not find that the Statement made the Engineer Representations
to Mr Parin. I would also reach that conclusion if the third
representation207 was included in the defined Engineer Representations.
216 In approaching this, it is of significance to note and take into
account:
1. the Statement was, effectively, only made to Mr Parin - it was
not made to a wider audience. It may be accepted that the
Engineer's 15 January 2018 email was sent only to the Builder.
However, in all of the circumstances, I consider that the
Engineer, in sending that email, would have correctly
anticipated that it would be forwarded to Mr Parin or, at the
very least, the contents would be communicated to him; and
2. Mr Parin's knowledge as at 15 January 2018, including what he
had been told from 2 October 2017 onwards and the decisions
he had made from that time.
217 The Engineer submitted that, when one had regard to the context
of the site inspection on 15 January 2018, the substance of what the
Statement represented and what was understood by Mr Parin was not
misleading nor deceptive in the relevant sense.208
205 Second defendant's closing submissions [69] - [71].
206 Second defendant's closing submissions [70].
207 SOC [18EA.3].
208 Second defendant's closing submissions [67].
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218 That is, the Engineer submitted that Mr Parin's concern prior to
that inspection was regarding 'pockets' or 'voids' he could observe in
the Grout Block and his concerns about their 'undermining' of the
Retaining Wall.209
219 Mr Parin, in his evidence, identified the pockets or voids he was
concerned about210 by reference to the photographs he took on
16 January 2018.211
220 In my view, Mr Parin's concern about 'undermining' shaped and
directed the text of the Engineer's 15 January 2018 email and Mr Parin's
reading of it at the time. Its focus was very much on the Grout Block
and its integrity.
221 In it, Mr Lalli stated an express assumption and so made plain the
premise on which he was advising: namely that the Grout Block had a
minimum of 300mm embedment under the Retaining Wall as was
proposed by Bradford Retaining.
222 On the basis of that express assumption and premise, in response
to Mr Parin's concerns as to the pockets or voids and whether there was
'undermining' of the Retaining Wall (caused by such voids or pockets),
the Engineer made the Statement about the long-term stability and
durability of the Grout Block.
223 Of course, the Statement included the words 'and the limestone
retaining wall over' immediately after the reference to the Grout Block.
However, I consider that in context what was being represented was, in
effect, the Grout Block (on the express assumption and premise) is
structurally adequate, and will not cause the Retaining Wall to fail or to
not be structurally adequate.
224 I consider that is the only sensible way that, in all of the
circumstances, objectively the Statement could be read. And I find that
is the way it was read by Mr Parin at the time.
225 That is because the Grout Block had been proposed by the
Engineer (by Engineer's Drawings Rev 3) when there was no concern,
on anybody's part, that the Retaining Wall had rotated and may
continue to do so.
209 See, for example, Mr Parin's point 6 in TB 97 at PDF page 3.
210 ts 259.
211 TB 102 - TB 104.
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226 By no later than 4 October 2017, Mr Parin had been told that the
Grout Block, in and of itself, would not prevent the further rotation of
the Retaining Wall. He had also been told by no later than 4 October
2017 that the absence of backing blocks to the Retaining Wall meant
that it was not structurally adequate.
227 Further, by no later than 4 October 2017, Mr Parin had been given
at least two options (Option 1 and Option 3 in either of its iterations)
which would have either prevented the Retaining Wall from further
rotating (Option 1) or would have made the new construction
invulnerable to the Retaining Wall continuing to rotate to the point that
it leant on the new construction and so loaded it (Option 3 both in its
original and modified forms).
228 Mr Parin had not taken either of those options and so knew from
4 October 2017, at least, that the Grout Block (as planned from the time
of the Engineer's Drawings Rev 3) would not cure the rotation of the
Retaining Wall and its consequent structural inadequacy.
229 The plaintiffs, in my view, seek to read the words in the Statement
about the Retaining Wall in isolation and seek to bypass the context
against which the Engineer's 15 January 2018 email was written.
Further, Mr Parin knew that nothing had been done at the Property
since October 2017 that could have had any effect on the structural
adequacy of the Retaining Wall itself. Further, the Statement had within
it a stated premise or assumption which Mr Lalli could not confirm and
in respect of which Mr Parin sought no other confirmation, from
Mr Lalli or anyone else.
230 With that context, I do not consider that the Statement made either
of the Engineer Representations, nor the third representation pleaded at
SOC [18EA.3], if that is included within the defined representations.
231 The plaintiffs' pleaded case is that the Engineer Representations
were relevantly misleading or deceptive in that the Retaining Wall:
18F.1 exhibited signs of rotation;
18F.2 was inadequately constructed and not supported by the
required backing blocks;
18F.3 was subject to lateral loading from a number of trees and
hedges on the adjacent property immediately behind the wall;
18F.2 appeared to have little embedment of the bottom blocks; and
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18F.3 exhibited signs of cracking with cracking visible in two
locations;
18F.4 was leaning slightly towards the Property at its rear-most
section;
18F.5 had been injected with microfine cement under the Retaining
Wall from the Property side, which would not correct the
problems with the Retaining Wall to make it stable; and
18F.5 would likely continue to rotate loading the Development
requiring it to be strengthened.212
232 Strictly, I do not need to consider whether the Engineer
Representations were relevantly misleading or deceptive in the way
pleaded, as I have found that the Statement did not make them.
233 If I am wrong, however, and the Statement did make the Engineer
Representations as pleaded in SOC [18F], then I do not consider that
the Engineer's 15 January 2018 email misled or deceived Mr Parin, nor
was likely to do so in the way pleaded.
234 In my view, each of SOC [18F.1] - [18F.5] was known to Mr Parin
both before, and immediately after, the inspection of the Property on
15 January 2018 and the Engineer's 15 January 2018 email.
235 The first part pleaded in SOC [18F.6]213 was also known by
Mr Parin (that the Retaining Wall would likely continue to rotate).
Whether the fact that, if nothing else was done, it would necessarily,
ultimately, load the NW Unit may not have been fully known or
appreciated by Mr Parin. That is, it may have been his reasonable
expectation that he would not allow the Retaining Wall to rotate that
far. It was the case that the Retaining Wall, in the Engineer's opinion,
would continue to rotate. However, it may not have been the case that
Mr Parin would have allowed it to sufficiently rotate so as to lean on
the new construction prior to Retaining Wall being stabilised.
236 In my view, even if the Engineer Representations were made by
the Statement (against my finding in [230] above), Mr Parin knew that
nothing had changed following the injection of the Grout Block and
that nothing had changed by the time the Statement was made.
212 SOC [18F]. I note that the last subparagraph's numbering is an obvious typographical error, and I will
refer to it as SOC [18F.6] from here.
213 That is the second SOC [18F.5].
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237 However, as will be seen, if I am wrong in that conclusion, I do
not consider that the plaintiffs relied in any meaningful way on the
Statement or the Engineer Representations and I do not consider that
they caused any compensable loss or damage to the plaintiffs whether
as pleaded or otherwise.
Did the plaintiff rely upon the Engineer's email
238 SOC [18G] is, on its face, a plea of the loss and damage suffered
by the plaintiffs. However, it may be seen that SOC [18G] and its
particulars are also effectively reliance and causation pleas rolled
together.
239 The loss and damage pleaded in SOC [18G] was particularised as:
1. without the Engineer Representations, the plaintiffs would not
have permitted the Builder to commence construction of the
Development with the deficiencies in the Retaining Wall;214
2. rather, the plaintiffs would have insisted that the Engineer
strengthen the design to adequately deal with any loading on the
new construction if the Retaining Wall continued to rotate
before continuing the construction of the Development;215
3. the Development had been partially built and could not be
completed until the deficiencies in the Retaining Wall had been
rectified;216
4. completion of the Development had been delayed;217
5. but for the Engineer Representations, completion of the
Development would have occurred by 11 January 2019;218
6. settlement of the sales of Lots 7 and 8 would have occurred at
some time in March 2019 at which time the plaintiffs would
have received $1,225,500;219
7. Units 5 and 6 would have sold for $530,000 and $540,000
respectively by 11 May 2019;220 and
214 SOC Particulars [18G.1].
215 SOC Particulars [18G.1].
216 SOC Particulars [18G.2].
217 SOC Particulars [18G.4].
218 SOC Particulars [18G.5.1].
219 SOC Particulars [18G.5.2].
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8. Units 1 to 4 would have been rented out and would have
received certain pleaded rental income.221
240 The first significant hurdle for the plaintiffs' reliance and causation
pleas, which I consider cannot be overcome, was Mr Parin's evidence in
cross-examination:
STANTON, MS: So option 3 was ruled out - - -?---Yes.
- - - by you in October 2017?---Yes.
So it certainly, wasn't going to be ruled in in January 2018, was
it?---That's a fair comment, yes.
Okay. So if there was no other option, then there was nothing that
anyone could have done for you once the slab was down, because you
had rejected the only option that Mr Lalli said there was?---At that
point, there was no other option that they proposed to me.
Well, there was no other option - - -?---I don't know that.
- - - that you knew about at that time was there?---At that time, yes.
Yes. So it didn't matter at all what you made of that 15 January 2018
advice. Even if Mr Lalli had said in that advice, "The wall could
continue to rotate," as Mr Lamattina has said in December, it wouldn't
have made any difference to your decision-making in terms of
construction in January 2018, would it?---Probably not, no.222
241 That is, Mr Parin accepted that, having rejected Option 3 in
October 2017, he was not going to reconsider it in January 2018.223
242 That evidence effectively means the plaintiffs cannot succeed in
making out the pleas in SOC [18G.1] and [18G.2].
243 Mr Parin's evidence in this respect, in my assessment, was entirely
consistent with the surrounding circumstances of what he knew from no
later than 4 October 2017 and the decision which he had made with that
knowledge or understanding from October 2017. That is, on the
plaintiffs' case:
1. the Engineer gave 'correct' advice in October 2017;
220 SOC Particulars [18G.5.4].
221 SOC Particulars [18G.5.6].
222 ts 286 - 287.
223 ts 286.
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2. having received that correct advice (that is, prior to the pouring
of the slab), Mr Parin decided not to implement either version
of Option 3 - being changes to the design of the cavity wall of
the NW Unit; but
3. if given that same correct advice in January 2018, after the slab
was down, Mr Parin would have made a different decision and
stopped the further construction.
244 That last proposition of the plaintiffs' case I have just identified,
was contradicted by Mr Parin's own evidence (identified in [240]
above).
245 I have considered some further difficulties below.
246 In closing, for the first time, there was an attempt by the plaintiffs
to advance a different case which had as a premise that the plaintiffs
could have put in an external wall on the NW Unit with a strengthened
design to withstand the Retaining Wall loading it.
247 In closing, again for the first time, the plaintiffs submitted that
there had been reliance on the Statement (and maybe the Engineer
Representations) because construction occurred after 15 January 2018
without any objection from Mr Parin and without dealing with the
issues identified with the Retaining Wall.224 I do not consider the
plaintiffs can advance such cases on the basis of their pleadings and the
way the trial was run up to that point.
248 I have referred to this above as one of the cases not run by the
plaintiffs.
SOC [18G.1]: The plaintiffs would not have permitted the Builder to
commence construction
249 The immediate factual difficulty with this plea is that by
15 January 2018 the Builder had materially commenced the
Development and the slab had been poured.
250 Building had already commenced and was, relevantly, literally set
in concrete before the Engineer's 15 January 2018 email.
251 Perhaps to overcome that difficulty, there was a shift in the
plaintiffs' position in their closing to focus attention away from
224 ts 510.
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'commencing construction' to construction continuing, with the
emphasis being placed on building from the slab.225
252 Nonetheless, the difficulties presented by Mr Parin's own evidence
(as identified in [240] above) remain for this plea.
SOC [18G.1]: The plaintiffs would have insisted the Engineer strengthen
the design
253 The immediate factual problem with this plea is that the Engineer
had, on 4 October 2017, at the latest, given the plaintiffs' options to
'strengthen the design to be adequate to deal with any loading of the
new construction'226 and the plaintiffs had rejected them.
254 Further, there was no evidence led by the plaintiffs that they would
have so 'insisted'.
255 It was not put to Mr Lalli in cross-examination that the second
iteration of his Option 3227 could have been built or accommodated on
the slab as laid.
256 Nonetheless, the difficulties presented by Mr Parin's own evidence
as identified in [240] above, remain for this plea.
SOC [18G.2]: The Development could not be completed until the Retaining
Wall had been rectified
257 The immediate problem with this plea is that there was no
evidence put before the Court to support it. There was no evidence
which established that the Development could not be completed until
the problems with the Retaining Wall had been rectified.
258 It may be that was Mr Parin's belief although, if I had to decide it,
I would not find it was a genuinely held belief. However, even if it was
Mr Parin's belief, that is not evidence that it was factually the case.
SOC [18G.4]: Completion of the Development had been delayed
259 There was no evidence before the Court which showed any
connection whatsoever between the Statement and the Engineer
Representations and the progress of the construction.
225 See, eg, Plaintiffs' closing submissions [12], [58] and [59].
226 SOC [18G.1].
227 See TB 48 and TB 49.
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260 Indeed, there was no evidence to suggest that anything different
was done by either the plaintiffs or the Builder following the Engineer's
15 January 2018 email and so there is no evidential foundation to
consider that email impacted on the construction from 15 January 2018
onwards.
261 Rather, all of the evidence was to the effect that the completion of
the Development was halted by the termination of the Building
Contract (which Mr Parin initiated), and no steps were taken which
would have allowed for the completion of the Development.
SOC [18G.5.1]: But for the Engineer's 15 January 2018 email, completion
of the Units would have occurred by 11 January 2019
262 The immediate factual difficulty with this plea is that the Building
Contract came to an end on 8 June 2018 for seemingly unrelated
reasons.
263 There was no evidence that the Building Contract came to an end
for any reason either directly or indirectly connected with the
Statement.
264 Indeed, Mr Parin accepted that he did not seek to terminate the
Building Contract because of any concern about the Grout Block, nor
the Retaining Wall.228
265 Rather, the plaintiffs' notice to remedy229 and notice of
termination230 did not agitate anything to do with the Retaining Wall,
nor anything to do with any advice from the Engineer nor the
Engineer's 15 January 2018 email.
266 Further, there was no evidence that the plaintiffs sought to engage
another builder after the Building Contract came to an end on 8 June
2018.
267 So, in short, there was no evidence that, after the termination of
the Building Contract, the Development could have been completed by
11 January 2019, but for the Statement (or otherwise). Mr Parin
accepted that he was unable to comment on whether the Development
could have been completed by January 2019 as he was not a builder.231
228 ts 289.
229 TB 143.
230 TB 168.
231 ts 307.
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268 Those matters, equally, as will be seen, dispose of the claimed loss
or damage arising out of sales of the Units, or rental income from the
Units proposed to be retained, which did not occur.
Conclusion on the pleaded loss and damage
269 With respect, even if the plaintiffs had been able to establish that
the Statement was, or the Engineer's Representations were, misleading
and deceptive in a material sense, and had been able to establish that
they had relied upon them, then I would have found that, as formulated,
the plaintiffs had not established compensable loss and damage, or any
loss or damage at all, caused by the Engineer, for the reasons set
out above.
Plaintiffs' calculation of their losses
270 Obviously enough on my findings above, the plaintiffs are not
entitled to an award of damages.
271 However, I have considered the claimed losses if I am wrong on
the merits of the plaintiffs' claims.
272 The plaintiffs pleaded that if the Development had been completed
in January 2019, the eight Units on the Property would have sold for a
total of $4,152,500,232 being:
1. $490,000 for each of Units 1 to 4;
2. $530,000 for Unit 5;
3. $540,000 for Unit 6;
4. $572,500 for Unit 7; and
5. $550,000 for Unit 8.
273 It may immediately be noted that the plaintiffs' claim and evidence
was that only four of the Units would have been sold at the completion
of the Development, and the other four Units would have been retained
by Mr Parin and rented out.233 It was not explained how the two
different pleas at SOC [4A] and SOC [50] should be read consistently.
232 SOC [50].
233 SOC [4A]; Exhibit A [7].
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274 It may be seen that there are at least three premises in the plea at
SOC [50]; namely:
1. that the Development would have been completed in January
2019, presumably but for the Engineer Representations;234
2. the sale prices for each of the units would have been as pleaded
in SOC [18G.5.2] and [18G.5.4]; and
3. the Units would have sold at the times and at the prices pleaded
in those paragraphs of the SOC.
275 The plaintiffs then plead two calculations of their losses in
SOC [54] and then, in the alternative, in SOC [55].
Plaintiffs' primary calculation of losses
276 By SOC [54], the primary claim to loss, it is pleaded that the
plaintiffs suffered damages in the amount of $1,324,520235 which is
said to be for:
1. 'holding costs' for the four Units which were to be retained and
rented; namely for: land tax, Water Corporation charges
(of some description) and City of Stirling rates;236
2. a claim to loss of rent on the four properties which were to be
retained;237 and
3. two amounts of interest.238
277 The 'holding costs' on the four Units which were to be retained are
then pleaded to be:
1. land tax in an amount of $16,352;239
2. Water Corporation charges of $5,714;240 and
3. City of Stirling rates being $7,645.241
234 SOC [18G.5.1].
235 SOC [54]. This is denied by the Defence [54].
236 SOC [54.1] - [54.4].
237 SOC [54.7].
238 SOC [54.6] and [54.8].
239 SOC [54.2].
240 SOC [54.3].
241 SOC [54.4].
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278 The plaintiffs adduced no evidence that established either the
payment of the 'holding costs' items, nor anything to support a more
notional claim to them.
279 Consequently, I cannot assess that claim, nor include it in any
findings of loss. I would have assessed this claim as not having been
established by the plaintiffs.
280 As part of the plaintiffs' primary claim to damages there are two
calculations of interest pleaded, namely:
1. additional interest on $1,225,500 from 8 February 2019 until the
estimated sale of Units 7 and 8 on 22 August 2024, being
$419,826;242 and
2. interest on $1,070,000 from 11 May 2019 until the sale of
Units 5 and 6 on 23 February 2025 being $372,008.243
281 As I understand it, the principal sums on which the interest is
sought to be calculated is the pleaded sale price for the respective units.
That is, the interest claim is not interest that the plaintiffs have paid, but
rather to compensate them from being 'kept out' of their money.244
282 Even if what was claimed was appropriate to compensate the
plaintiffs for being held out of their money, the factual assumptions on
which the calculations rest were not made out. That is, I could not have
made a finding as to when the Units would have been completed and
the costs to complete them following the Building Contract coming to
an end in January 2018. Those two matters, alone, mean that the
plaintiffs could not have succeeded on those interest claims.
283 Counsel for the plaintiffs accepted in closing that there was no
evidence as to what it would have cost for another builder to complete
the Development after the Building Contract had been terminated.245
284 The last item in the plaintiffs' primary damages claim is lost
rent for the period 11 May 2019 to 23 January 2025 and continuing.246
The plaintiffs relied on the pleaded 'rental value' of Units 1 to 4 in
SOC [35F], which are the Units Mr Parin intended to keep.
242 SOC [54.6].
243 SOC [54.8].
244 ts 150; Plaintiffs' closing submissions [68].
245 ts 552.
246 SOC [54.7].
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285 As SOC [35F] makes plain, the plaintiffs relied on the expert
evidence of Mr MacEwan to support their lost rent claim.
286 For reasons explained below, I could place no weight or reliance
on Mr MacEwan's opinion as to likely rental income. So, I can make no
findings at all as to what rent the plaintiffs may have received even if
they had been able to establish that the Units would have been available
for rent from May 2019.
287 Further, for reasons explained elsewhere, I also consider that the
plaintiffs could not make good in any relevant sense the assumption
that the Units could have been rented by them from any point in time,
and that would have been a further reason against making any finding
as to lost rent.
Plaintiffs' alternative calculation of loss
288 The plaintiffs pleaded an alternative claim to damages of
$759,545.247 That alternative plea was not easy to follow.
289 It appears to have proceeded on the following basis:
1. the eight Units would have been completed in January 2019;248
2. they would have been sold for $4,152,500;249
3. if the Building Contract had continued, then the costs to
complete the Development would have been $1,346,665;250
4. the plaintiffs would have received the sum of $2,805,835 at
about January 2019 if one deducted the $1,346,665 (costs to
complete the Development) from the combined sale price of
$4,152,500;251
5. the Property was sold for $2,100,000 in July 2025;252
6. the difference between the 'net amount' the plaintiffs say they
would have received in January 2019 and the actual purchase
price was $705,835;253
247 SOC [55].
248 SOC [55.1].
249 SOC [55.1]. See also SOC [50].
250 SOC [55.3].
251 SOC [55.3].
252 SOC [48] and [55.4].
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7. the plaintiffs incurred 'holding costs' from January 2019 until
4 July 2024 of $53,710;254 and
8. the 'difference in sale price' of $705,835 added to the holding
costs of $53,710 comprises the total of $759,554 claimed in the
alternative.255
290 The above calculation assumed completion of the Units in January
2019 which, as I have set out above, is an assumption which cannot be
made good on the plaintiffs' evidence.
291 It further assumes that all eight Units would have been sold
despite, as explained elsewhere, the plaintiffs' case and evidence being
that they intended to retain four Units.
292 The 'balance of the completion costs' claimed assumes that another
builder was or could have been engaged to complete the Development
after June 2018 for exactly the same price as was 'outstanding' under
the Building Contract. No evidence was led to support that and it
cannot be accepted.
293 The plaintiffs do not, when calculating the 'net' amount they would
have received on the sale of the units in January 2019, bring into
account the costs of construction they had already paid prior to the
termination of the Building Contract. Rather, they effectively ignore
those additional (prior) costs (which would obviously have to come off
the sale receipts to calculate any of the plaintiffs' net gain).256
294 The 'holding costs' in the alternative calculation from January
2019 until 4 July 2024 are not set out or explained. However, if they are
intended to be a reference to a subset of the 'holding costs' pleaded in
SOC [54.1] - [54.4], then they cannot be accepted for the same reasons
as the more detailed set of 'holding costs' would not be accepted.
295 For all of those reasons, I could not make a finding that the
plaintiffs suffered any loss on the alternative basis pleaded.
253 SOC [55.4].
254 SOC [55.5].
255 SOC [55.6].
256 This difficulty was raised with the plaintiffs in their opening, but remained unaddressed by the end of the
trial: see ts 153.
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Expert opinion of Graeme MacEwan
296 The plaintiffs tendered a report of Mr MacEwan which was filed
on 17 July 2023.257
297 Mr MacEwan's report and evidence only falls to be considered if I
am wrong on the findings I have made against the merits of the
plaintiffs' case. For those reasons, I will endeavour to be short in this
section.
298 Mr MacEwan was a quite unimpressive witness who had a clear
view of what he considered were relevant questions and, until directed
by the Court, considered himself able to answer only those questions he
considered to be relevant.258
299 Mr MacEwan's attitude in the witness box was certainly not one of
an independent expert. The prime example of that (leaving aside his
wish to only answer the questions he thought to be relevant) was an
exchange with counsel about whether he had been disciplined
professionally previously on a matter which was materially relevant to
the acceptance of his opinion in this case. The short answer was that he
had,259 but there was no frank acceptance of that by him.
300 Other breaches by Mr MacEwan of the Licensed Valuers Code of
Conduct were exposed in the course of his cross-examination. I do not
need to separately deal with them here.
301 Mr MacEwan's demeanour in the witness box leads me to have
significant reservations as to both his independence and his expertise.
302 With respect, Mr MacEwan's report was as equally unimpressive
as was Mr MacEwan in the witness box.
303 As I understand it, Mr MacEwan’s report is relied on by the
plaintiffs in their damages claim to prove the market value of the Units
at two points in time, and also the rental income which may have been
derived for the four Units on the ground floor of the Development.
304 Mr MacEwan did not attach to his report the instructions he had
received from the plaintiffs' solicitors and did not produce any record of
257 Valuation Report of Graeme MacEwan filed 17 July 2023 (Exhibit E).
258 See, for example: ts 328, ts 340.
259 Government of WA Article published on 20 July 2022 and dated 14 August 2024 (Exhibit F).
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verbal instructions he received from either the plaintiffs' solicitor or
Mr Parin himself.260
305 If I turn then to his valuation of the four Units to be sold, it
appeared that Mr MacEwan relied on the sale price of four other
properties as comparisons for each of January 2019 and January
2020.261
306 In relation to January 2019, Mr MacEwan stated:
Evidence
For January 2019
1. 2/39 Selina Street Innaloo 2 bed 2 bath unit 72 m2 sold
$415,000 9/10/2018 Inferior.
2. 2/50 Boronia Street Innaloo 2 bed 2 bathroom. 68m2 sold
15/1/19 $422,000 Inferior smaller.
3. 3/39 Selina Street Innaloo 2 bed 2 bath 72m2 sold 21/11/18
$420,000 Inferior.
4. 7/39 Selina Street Innaloo 2 bed 2 bath 63 m2 sold 18/10/18
$442,000. Similar style smaller unit.
Evidence shows sale rate. between $6205m2 and $7015m2 we have
adopted $6500m2 Market.262
(emphasis in the original)
307 In relation to January 2020, Mr MacEwan stated:
For January 2020
1. 5/1 Liege Street Woodlands sold 23/7/19 $395,000 2 bed 2 bath
unit. Inferior.
2. 65 Moorland Street Doubleview sold 1/7 /19 $585,00 2 bed
2 bath group. house [sic] Superior.
3. 132 Flamborough Street Doubleview sold $420,000 12/11/19
2 bed 2 bath group house new inferior location.
4. 236 Wilding Street Doubleview sold 4/6/19 $540,000 2 bed
2 bath group. house [sic] comparable.
260 ts 329 - 330.
261 Exhibit E at PDF page 7.
262 Exhibit E at PDF page 7.
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Evidence shows sale rate of $5821m2 to $7857m2.
The market from January was being affected by covid and prices would
begin to drop. We have adopted $6,700m2.263
(emphasis in the original)
308 As may be seen, in relation to the four properties listed as
'evidence' for January 2019, Mr MacEwan rated three of them as
'inferior' and the fourth as 'similar style, smaller unit'.
309 Again, as may be seen, in relation to the four properties cited as
'evidence' for January 2020, Mr MacEwan rated them respectively as
'inferior', 'group house superior', 'group house new inferior location' and
'group. [sic] house comparable'.
310 Mr MacEwan's report did not identify what made the other
properties 'inferior' or 'superior' or 'similar'. Nor did he say what he
meant by 'group house'.
311 Further, it was not apparent from his report how Mr MacEwan had
reasoned to the values as at January 2019 and January 2020 for the four
upper floor Units.264
312 It was unclear, for example, whether Mr MacEwan had sought to
simply multiply the square meterage of the particular Unit he was
valuing by the 'adopted' figure of $6,500m2 in January 2019 and
$6,700m2 in January 2020. I say that because the calculation did not
exactly match the adopted figure per square metre when multiplied by
the area of the particular Unit. That left open the possibility that
Mr MacEwan:
1. performed some different valuation;
2. had made mathematical errors in his calculation from the
adopted figure; or
3. had rounded up or down certain values produced by the
multiplication of the adopted rate by the square meterage of the
particular Unit.
Which of these occurred was not explained by Mr MacEwan.
263 Exhibit E at PDF page 7.
264 Exhibit E at PDF page 8.
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313 Further, it was unclear to what extent Mr MacEwan had relied on
the contracts which Mr Parin had entered into for the sale of Units 7
and 8 and which Mr MacEwan had included in his 'comments'.265 It is
not clear whether he used them as evidence to determine the sale rate
(but did not include them under the heading of 'evidence') or if he made
some other use of them.
314 As was apparent from his cross-examination, Mr MacEwan had
not sighted the two contracts of sale and could not say whether the
prices (as sold off the plan) were inclusive or exclusive of GST.266
315 I gave consideration as to whether I could use the two contracts of
sale as some different evidence of the market value of the other Units to
be sold. However, an immediate difficulty in doing so is the gap in time
between the execution of the contracts of sale and the two later points
in time at which the plaintiffs seek to prove the market value of the four
Units. I consider it would be an unsafe basis to work from the two sale
contracts.
316 I do not need to decide, presently, whether I accept Mr MacEwan's
valuation of the market value of the four Units to be sold as at January
2019 and January 2020. That is principally because, as I have set out
elsewhere, I do not consider that the plaintiffs have made good the
factual assumption that the Units would have been available for sale
either in January 2019 or January 2020.
317 In any event, however, for present purposes, I consider it is
enough to say that the very considerable reservations I have about
accepting Mr MacEwan's opinion evidence in its unreasoned form
would have led me to not accept his evidence.
318 The plaintiffs submitted267 that Mr MacEwan's evidence was not
challenged as to its accuracy and no evidence was led to show that the
valuation should have been different. With respect, this seems to miss
the point. The Court is not obliged to accept expert evidence, even
when no contrary expert opinion evidence has been called. And, in any
event, with the assumptions not having been established, the expert
evidence could not be accepted in any event.
265 Exhibit E at PDF page 7.
266 ts 339.
267 Plaintiffs' closing submissions [70].
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319 Mr MacEwan expressed his opinion on the rent which may have
been derived from the four ground floor units as follows:
Rental
Units l-4 Ground Floor rent per unit
January 2019. $335pw
January 2020 $410pw
January 2021 $450pw
January 2022. $525pw
January 2023. $700 pw268
320 Those values were incorporated into the SOC at [35F].
321 As was exposed in cross-examination,269 Mr MacEwan did not set
out in his report the information he had taken into account in providing
those figures for rent.
322 That would have been enough, in my view, for me to find that I
could not rely on Mr MacEwan's opinion evidence on the rent which
may have been derived. Counsel for the plaintiffs accepted in closing
that there was no basis or evidence included in Mr MacEwan’s report to
support his opinions on the rent which could have been derived.270
323 In conclusion, I would not have accepted any of the opinion
evidence of Mr MacEwan.
Other matters pleaded in the Engineer's Defence
324 The Engineer pleaded the following in its defence:
1. there was a contractual limitation period in its terms with the
plaintiffs that would time-bar the action against it;271
2. that the plaintiffs' claim was an apportionable claim within
s 5A(I) of the Civil Liability Act 2002 (WA) and/or s 87CB(1)
of the Competition and Consumer Act 2010 (Cth);272 and
268 Exhibit E at PDF page 8.
269 ts 336 - 337.
270 ts 547 - 548.
271 Defence [57] and following.
272 Defence [61].
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3. there was a contractual limitation that capped damages
recoverable by the plaintiffs from the Engineer.273
325 None of the above matters were addressed by the Engineer in any
of its submissions.
326 In its closing submissions, Counsel for the Engineer indicated that,
formally, the Engineer was not abandoning any of the above three
matters pleaded in the Defence.274 However, she was not advancing any
submissions to support the pleas.275
327 In light of the conclusions I have reached, I do not consider it
necessary for me to consider any of those further three matters pleaded
by the Engineer and I have not done so.
Disposition
328 I have not found that the Statement made the Engineer
Representations to Mr Parin as pleaded.
329 If I am wrong about that, I do not find that the Statement and the
Engineer Representations mislead or deceived, or were likely to mislead
or deceive, Mr Parin.
330 If I am wrong about both of those matters, I do not consider that
there was any reliance by Mr Parin on the Statement or the Engineer
Representations such that any loss or damage was caused by reason of
the Statement or the Engineer Representations.
331 In any event, I would have held that the plaintiffs had not
established that they had suffered any loss or damage as claimed
because of deficiencies in the evidence at trial.
332 Consequently, I dismiss the plaintiffs' claims against the Engineer.
333 I will hear the parties as to the final form of orders and costs, as
needs be.
273 Defence [64].
274 ts 503 - 504.
275 ts 504.
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I certify that the preceding paragraph(s) comprise the reasons for decision of
the Supreme Court of Western Australia.
IF
Associate to the Hon Justice Howard
18 JUNE 2026
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